Cash investments are unlike other investments. There are no standardized benchmarks or set parameters available to compare and measure your portfolio and its risk/reward characteristics. Utilizing our extensive research and the risk management tools that we have developed over the years, Capital Advisors Group will review and evaluate your investment portfolio to identify strengths and weaknesses and make recommendations to help you reduce risk and enhance liquidity. Our Credit/Risk Management Oversight service offering provides a deep, comprehensive review of your cash portfolio or combined portfolios, including:
- Risk attribution. The portfolio’s risk will be evaluated and rated on a numerical risk scale.
- Credit selection. Each security will be reviewed. Security holdings not receiving a clean bill of health will be placed on a “Watch List.” The specific reasons for placement of each security on the Watch List will be given, such as troubling credit characteristics or secondary market liquidity issues. A likely scenario and actionable recommendation for each of these securities also will be provided.
- Aggregate exposure. Individual portfolio holdings and the underlying money market fund holdings will be combined to provide a clear view of total exposure by asset class. Asset class exposures will be compared to those of a representative sample of U.S. institutional prime money market funds.*
- Portfolio sensitivity. Sensitivity analyses will be performed to test portfolio market value losses in multiple scenarios of interest rate shifts and credit market deterioration.
* Based on Capital Advisors Group, Inc.’s proprietary research of 15 of the largest AAA-rated institutional prime money market funds. Funds are not necessarily the largest funds within this category, but rather are the funds that Capital Advisors Group, Inc., believes are representative of the AAA-rated institutional prime money fund market.
